Broker news forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Notify me of new replies via email
Mortgage Broker News | 25 Feb 2013, 12:00 AM Agree 0
Brokers can warn clients about the pitfalls of IRDs and penalties, but it is a bit like leading a horse to water.

  • A Broker | 27 Feb 2013, 12:57 PM Agree 0
    I see many problems here The broker pays for the software, calculates their IRD and advises the client who goes to close and the bank gives them a different number. Is it not the broker's responsibility to get the figures from the lender or at least have the client get an approximate number. C'mon guys do your job.
  • Paul Therien - CENTUM | 02 Mar 2013, 05:03 AM Agree 0
    There is some risk associated with brokers giving the client a specific number as there are unknown variables that the broker does not have access too. We all know that the banks are not aligned in how IRD is calculated, CIBC is a prime example. CENTUM took a hard look at creating an IRD calculator, and we consulted with our lawyers carefully before we proceeded. In the end, it was deemed to be simply too much risk for our network. If they (brokers) quote an incorrect penalty they open themselves up to potential liability if they are wrong, regardless of the disclaimer attached. Add to that the reputation risk associated with providing the client with wrong information, and it becomes an unattractive proposition.

    We understand why some brokers would want to have this tool, so that there is a lower chance of losing the customer to the bank when they ask for a payout quote. If the relationship with the client is strong and the broker is providing valuable and sound advice, that chance is minimized far more than being able to provide a penalty quote could accomplish.
Post a reply